When a security interest is taken on personal property in a PPSA jurisdiction, the borrower temporarily transfers title to lender.

Question

Quizplus · Accepted Answer

In a PPSA (Personal Property Security Act) jurisdiction, the borrower grants the lender a security interest in the personal property as collateral for a loan, but does not transfer title of the property to the lender. The lender obtains a secured interest in the property, not ownership.

When a Security Interest Is Taken on Personal Property in a PPSA